Bank of Nova Scotia (BNS) 2024 Q2 法說會逐字稿

Good morning, and welcome to Scotiabank's 2024 Second Quarter Results Presentation. My name is John McCartney, and I'm Head of Investor Relations here at Scotiabank.

早安，歡迎來到豐業銀行 2024 年第二季業績發表會。我叫約翰‧麥卡尼，是豐業銀行投資人關係主管。

Presenting to you this morning are Scott Thomson, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer. Following our comments, we will be glad to take your questions.

今天早上向您介紹的是豐業銀行總裁兼執行長 Scott Thomson； Raj Viswanathan，我們的財務長；以及我們的首席風險長 Phil Thomas。根據我們的評論，我們將很高興回答您的問題。

Also present to take questions are the following Scotiabank's executives: Aris Bogdaneris from Canadian Banking; Jackie Allard from Global Wealth Management; Francisco Aristeguieta from International Banking and Travis MacHen from Global Banking and Markets.

出席提問的還有以下豐業銀行主管： 加拿大銀行業的 Aris Bogdaneris；全球財富管理公司的 Jackie Allard；來自國際銀行業務的 Francisco Aristeguieta 和來自全球銀行與市場業務的 Travis MacHen。

Before we start and on behalf of those speaking today, I'll refer you to Slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements.

在我們開始之前，我代表今天的發言者，請您參閱我們簡報的投影片 2，其中包含豐業銀行對前瞻性陳述的警告。

With that, I will now turn the call over to Scott.

現在，我將把電話轉給史考特。

Thank you, John and good morning, everyone. We are pleased to share our Q2 results, which reflect solid earnings from each of our 4 business lines. This is our second quarter since we shared our enterprise-wide strategy, and I'm encouraged by our continued progress against our plan. I want to take a few moments to recap a few key enterprise initiatives.

謝謝約翰，大家早安。我們很高興分享第二季的業績，這反映了我們 4 個業務線各自的穩健收益。這是我們分享企業範圍策略以來的第二個季度，我對我們的計劃持續取得進展感到鼓舞。我想花一些時間回顧一些關鍵的企業措施。

First, disciplined capital allocation to higher-return client segments and geographies and as virtually all of our incremental capital deployed in fiscal 2024 has been to identify priority businesses. Second, deposit growth remains fundamental to our business prioritization and client selection decisions.

首先，對高回報客戶群和地區進行嚴格的資本配置，因為我們在 2024 財政年度部署的幾乎所有增量資本都用於確定優先業務。其次，存款成長仍然是我們業務優先順序和客戶選擇決策的基礎。

Our focus on building primacy through deeper relationships has resulted in continued growth with P&C deposits up 7% year-to-date. Third, cost and process efficiencies, which both drive profitability and ensure frontline teams have the tools and capacity to deliver an excellent client experience.

我們專注於透過更深層的關係建立領先地位，這使得財產和意外險存款持續成長，今年迄今成長了 7%。第三，成本和流程效率，既能提高獲利能力，又能確保第一線團隊擁有提供卓越客戶體驗的工具和能力。

Well managed expenses and productivity gains are driving positive year-to-date operating leverage. And finally, a strong balance sheet, which will allow us to support clients through the cycle while maintaining optionality to invest in our businesses as evidenced by strong liquidity and our 13.2% CET1 capital ratio.

管理良好的費用和生產力的提高正在推動年初至今的積極營運槓桿。最後，強大的資產負債表將使我們能夠在整個週期內為客戶提供支持，同時保持投資我們業務的選擇性，強勁的流動性和 13.2% 的 CET1 資本比率就證明了這一點。

In terms of results, the bank reported adjusted earnings of $2.1 billion or $1.58 per share in the quarter. We saw solid revenue growth from both net interest income and fee income, coupled with disciplined expense management. The benefits of our productivity initiatives were particularly notable in our Canadian and International Banking segments, where productivity ratios improved 100 basis points and well over 200 basis points, respectively, over last year. Higher credit provisions reflecting the uncertain macroeconomic environment and the impact of sustained higher interest rates on certain client segments impacted profitability.

就業績而言，該銀行報告本季調整後收益為 21 億美元，即每股 1.58 美元。我們看到來自淨利息收入和費用收入的穩健收入成長，以及嚴格的費用管理。我們的生產力計畫的好處在加拿大和國際銀行業務部門尤其顯著，與去年相比，生產力比率分別提高了 100 個基點和遠超 200 個基點。較高的信貸撥備反映出宏觀經濟環境的不確定性以及利率持續走高對某些客戶群的影響，從而影響了獲利能力。

Overall, net loans were 3% lower year-over-year and in line with Q1. Balances have stabilized in the Canadian residential mortgage portfolio, while we have seen moderate growth in other personal and commercial portfolios. We continue to reposition our business banking portfolios with a view to optimize risk-weighted assets and profitability by client.

總體而言，淨貸款年減 3%，與第一季持平。加拿大住宅抵押貸款投資組合的餘額已穩定，而其他個人和商業投資組合則溫和成長。我們繼續重新定位我們的商業銀行投資組合，以優化客戶的風險加權資產和獲利能力。

And importantly, return on risk-weighted asset metrics are trending positively on a year-to-date basis. The all bank loan-to-deposit ratio continues to improve as a result of $26 billion of deposit growth over the past year, driven largely from focused efforts on our Canadian and international banking retail franchises.

重要的是，風險加權資產指標的報酬率今年迄今呈現正面趨勢。由於過去一年存款增加了 260 億美元，所有銀行的貸存比持續改善，這主要得益於我們對加拿大和國際銀行零售特許經營業務的集中努力。

Deposit growth has now outpaced loan growth in Canadian and International Banking in each of the past 5 quarters. The bank's wholesale funding has been reduced by $34 billion year-over-year, resulting in a wholesale funding ratio below 20% down from approximately 23% in Q2 of 2023.

過去五個季度，加拿大和國際銀行業的存款成長均超過了貸款成長。該銀行的批發融資年減了 340 億美元，導致批發融資比率低於 20%，低於 2023 年第二季的約 23%。

Turning to the credit environment. The impact of higher rates is increasingly weighing on consumers and to a lesser extent, our commercial and small business clients. Although we believe the monetary tightening phase of the rate cycle in Canada is now complete, our prior expectation for multiple rate cuts in the back half of the calendar year feels less certain. The reality of a higher for longer rate scenario will naturally result in a continuation of elevated credit provision in our retail portfolios, keeping us at the higher end of our 2024 PCL outlook of 55 basis points.

轉向信用環境。較高利率的影響越來越大地影響消費者，在較小程度上也影響我們的商業和小型企業客戶。儘管我們認為加拿大利率週期的貨幣緊縮階段現已完成，但我們之前對今年下半年多次降息的預期感覺不太確定。長期利率較高的現實自然會導致我們零售投資組合中的信貸撥備繼續增加，使我們的 2024 年 PCL 展望保持在 55 個基點的較高水平。

Our Commercial Banking and Global Banking and Markets portfolios remain stable from a credit quality perspective, although a continuation of the current rate outlook will weigh on economic activity and industry loan growth. In our key Latin American markets, we are now into the easing phase of the interest rate cycle.

從信貸品質的角度來看，我們的商業銀行以及全球銀行和市場投資組合保持穩定，儘管當前利率前景的持續將為經濟活動和工業貸款成長帶來壓力。在我們的主要拉丁美洲市場，我們現在正進入利率週期的寬鬆階段。

Central Bank policy rates in Chile at 6% and Peru at 5.75% are down significantly from peak levels last year as inflation has been successfully managed lower. Mexico Central Bank has started to ease policy rates as aggressive tightening over the past 2 years has effectively lowered inflation and managed near-term GDP growth expectations to more sustainable levels.

由於通貨膨脹已成功控制在較低水平，智利和秘魯的央行政策利率分別為 6% 和 5.75%，較去年的峰值水平大幅下降。墨西哥央行已開始放鬆政策利率，因為過去兩年的激進緊縮政策有效降低了通膨，並將近期 GDP 成長預期控制在更永續的水平。

The Mexican economy continues to demonstrate resilient growth in a tight employment market despite the impact of double-digit interest rates for the past 12 months. Our forecast do not anticipate recessionary conditions in any of our key operating geographies over the next few years.

儘管過去 12 個月受到兩位數利率的影響，但墨西哥經濟在就業市場緊張的情況下繼續展現出彈性成長。我們的預測並未預見到未來幾年我們任何主要營運地區都不會出現衰退情況。

We are well positioned to execute on our new international banking strategy and what we expect to be a more normalized economic growth environment throughout the region going forward.

我們處於有利位置，可以執行新的國際銀行策略，並期望整個地區未來的經濟成長環境將更加正常化。

A few highlights in terms of performance and strategic progress within each of our business lines. Our Canadian Banking business contributed approximately $1 billion of earnings in the period. Favorable business mix shift, asset repricing and deposit growth delivered solid margin expansion and resulting revenue growth in a period where overall loans were marginally lower year-over-year.

我們每個業務線的績效和策略進展方面的一些亮點。我們的加拿大銀行業務在此期間貢獻了約 10 億美元的收益。在整體貸款同比略有下降的情況下，有利的業務結構轉變、資產重新定價和存款成長實現了利潤率的穩健擴張，並帶來了收入成長。

With continued focus on process and efficiency, expense growth was moderate this quarter, resulting in a positive year-to-date operating leverage of 3.1%, Our focus on relationships and more deliberate new client selection is driving an increase in the percentage of clients that we consider to be primary.

由於持續關注流程和效率，本季費用增長溫和，導致年初至今的營運槓桿率為 3.1%。

Our retail bank has added over 95,000 net new primary clients year-to-date and importantly, saw the lowest client attrition in 3 years as a result of more selective client acquisition and cross-sell initiatives. We are closely tracking client relationship depth and have seen meaningful progress with over 45% of all retail clients currently holding 3-plus products in the Canadian bank a 230 basis point increase from a year ago.

今年迄今為止，我們的零售銀行淨新增主要客戶超過 95,000 名，重要的是，由於更有選擇性的客戶獲取和交叉銷售舉措，客戶流失率達到了 3 年來最低。我們正在密切追蹤客戶關係深度，並取得了有意義的進展，超過 45% 的零售客戶目前在加拿大銀行持有 3 種以上產品，比一年前增加了 230 個基點。

Our Scene+ loyalty program continues to drive deeper client relationships with 32% of new clients holding more than 3 products after 1 month with the bank. These higher-value Scene+ clients now represent over half of the new-to-bank clients across day-to-day banking and credit cards up from 40% last year.

我們的 Scene+ 忠誠度計畫持續加深客戶關係，在與銀行合作 1 個月後，32% 的新客戶持有 3 種以上產品。這些價值較高的 Scene+ 客戶目前佔日常銀行業務和信用卡新客戶的一半以上，高於去年的 40%。

At Tangerine, we continue to add new clients and see lower attrition rates with existing clients. Year-to-date, we're tracking well ahead of plan to add new clients in fiscal 2024. Importantly, primary client growth at Tangerine is up 15% year-to-date, with 35% of all clients now having 3 or more products with Tangerine.

在 Tangerine，我們不斷增加新客戶，並發現現有客戶的流失率較低。今年迄今為止，我們正在遠遠提前於 2024 財年增加新客戶的計劃。橘子。

Tangerine continues to set the industry pace in terms of mobile penetration with 64% of new client sign-ups happening exclusively through the mobile channel, up 11% year-to-date versus last year. Our commercial banking business saw a continued moderation of loan growth, up 5% against double-digit deposit growth.

Tangerine 在行動滲透率方面繼續引領業界步伐，64% 的新客戶註冊完全透過行動管道進行，今年迄今比去年增長了 11%。我們的商業銀行業務貸款成長持續放緩，存款成長兩位數，成長 5%。

Ongoing efforts on client selection and capital optimization contributed to a continued improvement in return on risk-weighted assets this quarter. We continue to believe there is material share gain and profitability growth potential in our domestic retail and commercial bank, which we expect to deliver at least half of the bank's earnings growth over the medium term.

在客戶選擇和資本優化方面的持續努力有助於本季風險加權資產回報率的持續改善。我們仍然相信，我們的國內零售和商業銀行具有實質的份額成長和獲利成長潛力，我們預計這將在中期內實現該銀行至少一半的獲利成長。

Global wealth earnings of $387 million reflects strong performance from our asset management franchise, our integrated multichannel advisory business and continued outsized growth from our international wealth unit. Favorable returns in most global equity benchmarks and strong relative performance from our 1832 fund lineup, resulted in solid AUM growth in the quarter and supports continued flows into long-term investment products as the year progresses.

全球財富收益達 3.87 億美元，反映出我們的資產管理業務、綜合多通路諮詢業務的強勁表現以及國際財富部門的持續大幅成長。大多數全球股票基準的良好回報以及我們 1832 基金陣容的強勁相對錶現，導致本季度資產管理規模穩健增長，並支持隨著時間的推移繼續流入長期投資產品。

Assets under management in our international wealth business grew over 15% in the quarter through a combination of strong investment performance and over $1 billion of net sales in the period. Our Canadian wealth management advisory businesses, ScotiaMcLeod, MD Financial and our private investment counsel business are having great success delivering our fully integrated total wealth offerings to clients.

由於強勁的投資業績和超過 10 億美元的淨銷售額，本季我們國際財富業務管理的資產成長了 15% 以上。我們的加拿大財富管理諮詢業務、ScotiaMcLeod、MD Financial 和我們的私人投資諮詢業務正在取得巨大成功，為客戶提供完全整合的整體財富產品。

We have increased the number of financial plans delivered this quarter by 27% year-to-date, and we continue to add product specialists to deliver comprehensive solutions to clients. Clients with the financial plan are better prepared for the future are a significant driver of Net Promoter Score and twice as likely to have a multiproduct relationship with the bank.

年初至今，我們本季交付的財務計畫數量增加了 27%，我們持續增加產品專家，為客戶提供全面的解決方案。制定財務計畫的客戶能夠為未來做好更好的準備，是淨推薦值的重要推動因素，與銀行建立多產品關係的可能性是其兩倍。

We continue to see progress in strengthening the partnership between our wealth and Canadian retail channels with referrals up 15% year-over-year. In our Global Banking and Markets business, we reported resilient earnings of $428 million this quarter despite headwinds in the Canadian capital markets franchise that were largely offset by strong performance in our U.S. business.

我們在加強我們的財富與加拿大零售通路之間的合作夥伴關係方面繼續取得進展，推薦量年增 15%。在我們的全球銀行和市場業務中，本季度我們報告了4.28 億美元的強勁盈利，儘管加拿大資本市場特許經營權遇到了阻力，但這些阻力在很大程度上被我們美國業務的強勁表現所抵消。

The business continues to reposition the portfolio with a view to achieving better balance in our loan-to-deposit growth as well as align with our strategic geographic priorities and client return objectives. Deposits were lower by 2% in the quarter, while overall loan volumes were down 6% due to lower new origination activity, paydowns and additional delivered actions to strategically reposition the portfolio.

該業務繼續重新定位投資組合，以期在貸存成長方面實現更好的平衡，並與我們的策略地理優先事項和客戶回報目標保持一致。本季存款下降 2%，而整體貸款量下降 6%，原因是新發放活動、還款和策略性重新定位投資組合的額外行動減少。

We were encouraged by GBM's performance in terms of growth in underwriting and advisory fee revenue in the quarter, an indication of more effective client selection and product coverage in our GBM business. We are also pleased to welcome Travis MacHen to our leadership team as our new Group Head of Global Banking and Markets.

我們對 GBM 在本季度承保和諮詢費收入成長方面的表現感到鼓舞，這表明我們 GBM 業務的客戶選擇和產品覆蓋更加有效。我們也很高興歡迎 Travis MacHen 加入我們的領導團隊，擔任我們的新全球銀行和市場集團主管。

Travis brings a career of U.S.-focused corporate investment banking experience with best-in-class global banks. In our International Banking business, we delivered strong results this quarter with a net earnings contribution of $677 million resulting in a year-to-date return on equity of 15%, up from 13.3% in the period last year.

特拉維斯（Travis）帶來了在一流的全球銀行從事以美國為中心的企業投資銀行業務的經驗。在我們的國際銀行業務中，我們本季取得了強勁的業績，淨利潤貢獻為 6.77 億美元，年初至今的股本回報率為 15%，高於去年同期的 13.3%。

Solid revenue growth was driven by continued margin expansion in most geographies, coupled with impressive expense discipline resulting in a significant improvement in the segment's productivity ratio to 51.1%.

大多數地區的利潤率持續擴張，加上令人印象深刻的支出紀律，導致該部門的生產力顯著提高至 51.1%，推動了收入的穩健成長。

Our capital repositioning continued in the period as risk-weighted assets in the business were lower by $2 billion while deposits were up 3% sequentially and 6% on a year-over-year basis. Our GBM LatAm contribution moderated to $290 million in the quarter, down from an exceptional $372 million contribution in Q1.

在此期間，我們繼續進行資本重新定位，業務中的風險加權資產減少了 20 億美元，而存款環比增長 3%，同比增長 6%。本季我們對 GBM LatAm 的貢獻降至 2.9 億美元，低於第一季 3.72 億美元的貢獻。

We are encouraged by the improved performance and profitability of the business as we look to drive even greater productivity through a more regional standardized operating model. In international retail, we have a significant client segmentation initiative underway to grow primary clients more selectively in the affluent, emerging affluent and top of mass segments.

我們對業務績效和獲利能力的提高感到鼓舞，因為我們希望透過更區域化的標準化營運模式來提高生產力。在國際零售業，我們正在進行一項重大的客戶細分計劃，以便更有選擇性地在富裕階層、新興富裕階層和頂級大眾群體中發展主要客戶。

While we expect this franchise repositioning, including client selection to be an ongoing process, we saw good progress on priority net client growth in the quarter. We continue to believe we have sufficient scale and capital deployed in our international banking business to profitably grow our retail businesses and capitalize on wholesale opportunities when favorable market conditions and client activity allow, as evidenced by solid results again this quarter.

雖然我們預計這種特許經營重新定位（包括客戶選擇）將是一個持續的過程，但我們看到本季優先淨客戶成長取得了良好進展。我們仍然相信，我們在國際銀行業務中擁有足夠的規模和資本，可以在有利的市場條件和客戶活動允許的情況下實現零售業務的盈利增長，並利用批發機會，本季度再次取得的穩健業績就證明了這一點。

In summary, the bank delivered solid financial performance in the quarter, while executing on key initiatives that will enhance profitability and set us up for a more balanced resilient growth over the long term. I would like to thank our team Scotiabankers globally who are delivering on our ambitious plan. As I continue to meet with our teams, it is clear our people understand the important role they play in driving the sustainable, profitable growth we've committed to delivering for our shareholders.

總而言之，該銀行在本季度實現了穩健的財務業績，同時執行了一些關鍵舉措，這些舉措將提高盈利能力，並為我們實現更平衡的長期彈性增長奠定基礎。我要感謝我們全球豐業銀行團隊正在實現我們雄心勃勃的計畫。當我繼續與我們的團隊會面時，很明顯，我們的員工了解他們在推動我們致力於為股東提供的可持續、獲利成長方面發揮的重要作用。

With that, I will turn it over to Raj for a more detailed financial review of the quarter.

這樣，我將把它交給 Raj，以對該季度進行更詳細的財務審查。

Thank you, Scott and good morning, everyone. All my comments that follow will be on an adjusted basis for the usual acquisition-related costs.

謝謝你，斯科特，大家早安。我接下來的所有評論都將根據通常的收購相關成本進行調整。

Starting on Slide 6 for a review of the second quarter results. The bank reported quarterly earnings of $2.1 billion and diluted earnings per share of $1.58. Return on equity was 11.3%, and return on tangible common equity was 13.8%. Revenues were up 5% year-over-year, driven by 5% growth in net interest income and also by net interest margin expansion and 6% growth in noninterest income.

從投影片 6 開始回顧第二季的業績。該銀行公佈的季度收益為 21 億美元，稀釋後每股收益為 1.58 美元。股本回報率為 11.3%，有形普通股回報率為 13.8%。受淨利息收入成長 5%、淨利差擴大和非利息收入成長 6% 的推動，營收年增 5%。

All bank net interest margin expanded 5 basis points year-over-year. Margin was down 2 basis points quarter-over-quarter, driven mainly by a lower contribution from asset and liability management activities. Noninterest income was $3.7 billion, up 6% year-over-year, primarily from higher wealth management revenues, underwriting and advisory, commitment and credit fees, partly offset by lower acceptance fees.

所有銀行淨利差較去年同期擴大5個基點。利潤率較上月下降 2 個基點，主要是由於資產和負債管理活動的貢獻下降。非利息收入為 37 億美元，年增 6%，主要來自財富管理收入、承銷和諮詢、承諾和信貸費用的增加，部分被較低的承兌費用所抵銷。

The provision for credit losses were $1 billion and the PCL ratio was 54 basis points, up 4 basis points quarter-over-quarter. Expenses grew a modest 3% year-over-year driven by higher technology-related costs. Personal costs from inflationary adjustments and higher performance-based compensation, partly offset by lower share-based compensation and the benefits of the efficiency initiatives.

信貸損失準備金為10億美元，PCL比率為54個基點，較上季上升4個基點。由於技術相關成本上升，費用較去年小幅增加 3%。通貨膨脹調整和更高的基於績效的薪酬帶來的個人成本，部分被較低的基於股份的薪酬和效率舉措的好處所抵消。

Quarter-over-quarter, expenses were down 1%, driven by seasonally higher share-based compensation in the last quarter. The productivity ratio was 56.2% this quarter and year-to-date operating leverage was a positive 1%. Moving to Slide 7, which shows the evolution of the common equity Tier 1 ratio and risk-weighted assets during the quarter. The bank's CET1 capital ratio was 13.2%, an increase of 30 basis points quarter-over-quarter and 90 basis points year-over-year, primarily benefiting from RWA optimization efforts.

受上一季股票薪資季節性上升的推動，費用較上季下降 1%。本季的生產率為 56.2%，年初至今的營運槓桿為正 1%。轉到幻燈片 7，它顯示了本季普通股一級資本比率和風險加權資產的演變。該行CET1資本率為13.2%，較上季上升30個基點，較去年同期上升90個基點，主要受惠於RWA優化工作。

Total risk-weighted assets was $450.2 billion, marginally down from $451 billion in the prior quarter. Earnings contributed 14 basis points and the DRIP program contributed 10 basis points, offset partly by a reduction of 5 basis points from the revaluation of securities. Lower risk-weighted assets primarily reflecting the benefits of RWA optimization activities contributed 15 basis points.

風險加權資產總額為 4,502 億美元，略低於上一季的 4,510 億美元。獲利貢獻了 14 個基點，DRIP 計劃貢獻了 10 個基點，部分被證券重估導致的 5 個基點的減少所抵消。主要反映 RWA 優化活動效益的較低風險加權資產貢獻了 15 個基點。

The Q1 capital floor add-on of $7.8 billion was eliminated by changes in book quality and LGD model updates that only impact the model risk-weighted asset numbers. The bank will continue to maintain strong balance sheet metrics as it executes on its strategic initiatives.

第一季增加的 78 億美元資本被帳面品質變化和 LGD 模型更新所抵消，這些變化僅影響模型風險加權資產數量。該銀行在執行其策略性舉措時將繼續保持強勁的資產負債表指標。

Turning now to the business line results beginning on Slide 8. Canadian Banking reported earnings of $1 billion, a decrease of 4% year-over-year as higher revenues were more than offset by significantly higher PCLs. The business generated another quarter of positive operating leverage, resulting in year-to-date positive operating leverage of 3.1%.

現在轉向從幻燈片 8 開始的業務線業績。該業務又創造了一個季度的正營運槓桿，導致年初至今的正營運槓桿達到 3.1%。

Average loans and acceptances were flat quarter-over-quarter and down about 1% from the prior year. The portfolio mix continues to evolve in line with our strategy as business loans grew 8% year-over-year, credit card balances grew 18% and personal loans grew 2%, while residential mortgage balances declined 5%.

平均貸款和承兌匯票環比持平，比上年下降約 1%。投資組合繼續按照我們的策略發展，商業貸款年增 8%，信用卡餘額增加 18%，個人貸款增加 2%，而住宅抵押貸款餘額下降 5%。

We continue to see deposit growth as year-over-year deposits grew 7% and the loan-to-deposit ratio improved to 122% from 132% last year. Net interest income increased 12% year-over-year, primarily from solid deposit growth and margin expansion.

我們繼續看到存款成長，存款年增 7%，貸存比從去年的 132% 提高到 122%。淨利息收入年增 12%，主要得益於存款穩健成長和利潤率擴張。

The net interest margin expanded 26 basis points year-over-year reflecting benefits of asset repricing, business mix changes and growth in deposits. Margin was stable quarter-over-quarter as asset margin expansion was offset by deposit margin compression. Noninterest income was down 11% year-over-year as the prior included elevated private equity gains and income from our equity interest in Canadian Tire Financial Services that we divested in October 2023.

淨利差較去年擴大26個基點，反映資產重新定價、業務結構變化和存款成長的好處。由於資產利潤率擴張被存款利潤率壓縮所抵消，利潤率環比保持穩定。非利息收入年減 11%，原因包括私募股權收益增加以及我們於 2023 年 10 月剝離的 Canadian Tire Financial Services 股權帶來的收入。

The PCL ratio was 40 basis points, up 6 basis points quarter-over-quarter. Expenses increased 4% year-over-year primarily due to higher technology costs, personnel costs and expenses to support business growth. Quarter-over-quarter expenses grew 1%, primarily from higher pension and benefits and premises costs.

PCL比率為40個基點，較上季上升6個基點。費用年增 4%，主要是由於技術成本、人員成本和支援業務成長的費用增加。季度開支增加 1%，主要是由於退休金、福利和辦公室成本增加。

Turning now to Global Wealth Management on Slide 9. Earnings of $387 million grew 8% year-over-year, driven by higher revenues in Canada by a mutual fund piece and International Wealth partly offset by higher volume-related expenses. Quarter-over-quarter earnings were up 3%, primarily due to higher brokerage and mutual fund revenues across Canada and international partly offset by higher expenses.

現在轉向幻燈片 9 上的全球財富管理。季度獲利成長 3%，主要是由於加拿大和國際經紀業務和共同基金收入增加，但部分被費用增加所抵消。

Revenues of $1.4 billion were up $114 million or 9% year-over-year, driven by higher fee-based revenues, mutual fund fees from strong assets under management growth and higher net interest income from loan and deposit growth across our Canadian and international businesses.

營收為14 億加元，年增1.14 億加元，增幅為9%，原因是收費收入增加、管理資產強勁增長帶來的共同基金費用以及加拿大和國際業務貸款和存款增長帶來的淨利息收入增加。

Expenses were up 9% year-over-year due to higher volume-related expenses, sales force expansion and higher costs to support business growth. Part assets under management increased 6% year-over-year to $349 billion as market appreciation was partly offset by net redemptions. AUA grew 7% over the same period to $669 billion from market appreciation and higher net sales. International Wealth Management generated earnings of $66 million, up 19% year-over-year, driven by higher mutual fund fees in Mexico and strong deposit growth in Peru. AUA and AUM grew 10% and 15%, respectively, year-over-year.

由於銷售相關費用增加、銷售團隊擴張以及支援業務成長的成本增加，費用年增 9%。由於市場升值被淨贖回部分抵消，部分管理資產年增 6%，達到 3,490 億美元。由於市場升值和更高的淨銷售額，AUA 同期成長 7%，達到 6,690 億美元。在墨西哥共同基金費用上漲和秘魯存款強勁成長的推動下，國際財富管理業務獲利 6,600 萬美元，較去年同期成長 19%。 AUA 和 AUM 較去年同期分別成長 10% 和 15%。

Turning to Slide 10, Global Banking and Markets. Global Banking and Markets generated earnings of $428 million, up 7% year-over-year. Capital markets revenue was up 5% year-over-year, primarily from higher fixed income and global equities revenues, partly offset by lower FX and commodities revenues.

轉向投影片 10：全球銀行業和市場。全球銀行和市場業務獲利 4.28 億美元，年增 7%。資本市場收入年增 5%，主要來自固定收益和全球股票收入的增加，但部分被外匯和大宗商品收入的減少所抵銷。

Quarter-over-quarter capital markets revenue was down 5% as global equities revenue were down 11%, partly offset by growth in FICC.

由於全球股票收入下降 11%，資本市場收入較上季下降 5%，部分被 FICC 成長所抵銷。

Business Banking revenues declined 8% year-over-year and 4% quarter-over-quarter, primarily due to lower corporate and investment banking revenues as the business continues to optimize capital deployment. Loans and acceptances were down 6% quarter-over-quarter to $115 billion, largely driven by borrowers accessing the debt markets to pay down loans and management's focus on ongoing balance sheet optimization.

商業銀行業務收入年減 8%，季減 4%，主要是由於該業務持續優化資本配置，企業和投資銀行業務收入下降。貸款和承兌匯票環比下降 6%，至 1,150 億美元，這主要是由於借款人進入債​​務市場償還貸款以及管理層對持續資產負債表優化的關注。

Net interest income decreased 14% year-over-year, primarily due to lower loan volumes, partly offset by lower trading-related funding costs. Noninterest income was up 2% year-over-year, mainly from higher underwriting and advisory fees, partly offset by lower trading-related revenue from the impact of the proposed denial of dividend received deduction on certain shareholdings in Canada.

淨利息收入年減 14%，主要是因為貸款量減少，但部分被交易相關融資成本下降所抵銷。非利息收入年增 2%，主要來自承銷和諮詢費用的增加，但部分被擬議拒絕對加拿大某些股權扣除股息所產生的影響而導致交易相關收入減少所抵消。

Expenses were up 4% year-over-year, due mainly to higher personnel costs and technology investments to support business growth. Quarter-over-quarter, expenses were down 3%, mainly due to seasonality of share-based competition, which was higher in the first quarter.

費用年增 4%，主要是由於支持業務成長的人員成本和技術投資增加。費用較上季下降 3%，主要是由於股份競爭的季節性，第一季費用較高。

The U.S. business generated strong earnings of $271 million up $97 million or 55% year-over-year with strong contributions from both Capital Markets and Corporate and Investment Banking while managing risk-weighted asset growth. GBM Latin America, which was reported as part of International Banking reported earnings of $290 million, up 5% compared to the prior year, mainly from Mexico. The business also earned through a 7% year-over-year reduction in average assets.

美國業務實現了 2.71 億美元的強勁盈利，同比增長 9,700 萬美元，即 55%，這得益於資本市場以及企業和投資銀行業務的強勁貢獻，同時管理風險加權資產增長。作為國際銀行業務一部分的 GBM 拉丁美洲報告收入為 2.9 億美元，比上年增長 5%，主要來自墨西哥。該業務還透過平均資產年減 7% 實現盈利。

Moving to Slide 11 for a review of International Banking. My comments that follow are on an adjusted and constant dollar basis. The segment delivered earnings of $677 million, down 2% year-over-year. Revenue was up 6% year-over-year as net interest income was up 14%, mainly in Chile and Mexico, partly offset by a decline in noninterest income driven by lower trading revenues.

前往投影片 11，回顧一下國際銀行業務。我接下來的評論是在調整後且美元不變的基礎上做出的。該部門獲利 6.77 億美元，年減 2%。營收年增 6%，淨利息收入成長 14%，主要在智利和墨西哥，但部分被交易收入下降導致的非利息收入下降所抵銷。

Net interest margin expanded 11 basis points quarter-over-quarter to 447 basis points driven by lower cost of funds from rate cuts and higher inflation benefits mainly in Chile. Year-over-year loans were down 2%, primarily in Brazil and Peru.

淨利差較上季擴大 11 個基點至 447 個基點，原因是降息帶來的資金成本下降以及主要在智利的通膨收益上升。貸款年減 2%，主要是在巴西和秘魯。

Total business loans declined 7%, partly offset by 6% growth in residential mortgages. Deposits grew a strong 6% year-over-year, primarily in Mexico, Chile and Brazil. Total personal deposits grew 2% year-over-year and nonpersonal deposits grew 8%.

商業貸款總額下降 7%，部分被住宅抵押貸款 6% 的成長所抵消。存款較去年同期強勁成長 6%，主要是在墨西哥、智利和巴西。個人存款總額較去年同期成長2%，非個人存款成長8%。

The loan-to-deposit ratio improved to 124% from 138% in the prior year. The provision for credit losses was 138 basis points or $566 million down $2 million quarter-over-quarter. Expenses were up a modest 3% year-over-year driven by technology expenses and business and capital taxes despite a higher inflation environment. Year-to-date operating leverage was a positive 5.5%.

存貸比由上年的138%提高至124%。信貸損失準備金為 138 個基點，即 5.66 億美元，季減 200 萬美元。儘管通膨環境較高，但在技術費用以及商業和資本稅的推動下，費用較去年同期小幅成長 3%。年初至今，營運槓桿率為 5.5%。

Turning to Slide 12. The other segment reported an adjusted net loss attributable to equity holders of $421 million, an improvement of $53 million compared to the prior quarter, mainly due to higher noninterest revenues mostly from mark-to-market benefits from investments in certain derivatives and lower expenses.

轉向投影片12。收益衍生性商品和降低費用。

I'll now turn the call over to Phil to discuss risk.

我現在將把電話轉給菲爾討論風險。

Thank you, Raj. Good morning, everyone. Credit performance is playing out as expected. International Banking has benefited from a stabilizing macroeconomic environment and specific client segments in Canadian Banking are facing headwinds as rate relief is delayed.

謝謝你，拉傑。大家，早安。信貸表現符合預期。國際銀行業受益於穩定的宏觀經濟環境，而加拿大銀行業的特定客戶群因利率減免被推遲而面臨阻力。

As a result, this quarter, all bank PCLs were 54 basis points towards the higher end of our range. This resulted in total PCLs of approximately $1 billion, up quarter-over-quarter by $45 million. performing PCLs were $32 million or 2 basis points.

因此，本季所有銀行 PCL 均較我們區間的高階上漲 54 個基點。這導致 PCL 總額約為 10 億美元，季增 4,500 萬美元。執行 PCL 為 3,200 萬美元或 2 個基點。

Impaired PCLs were $975 million or 52 basis points, up 33 basis points quarter-over-quarter largely driven by Canadian Banking and retail, partly offset by lower PCLs in Canadian Business Banking.

受損的 PCL 為 9.75 億加元，即 52 個基點，環比增長 33 個基點，主要由加拿大銀行業和零售業推動，部分被加拿大商業銀行業 PCL 的下降所抵消。

We continue to maintain appropriate allowances on loans with an ACL coverage ratio of 88 basis points up 2 basis points quarter-over-quarter and up 10 basis points from Q3 2023. In Canadian Banking, PCLs were $428 million, translating to a PCL ratio of 40 basis points up 6 basis points quarter-over-quarter.

我們繼續維持適當的貸款準備金，ACL 覆蓋率為88 個基點，環比上升2 個基點，較2023 年第三季上升10 個基點。為40 個基點，季減 6 個基點。

Canadian retail PCLs were $365 million, of which $343 million were impaired PCLs. This represented a $65 million increase quarter-over-quarter. Canadian clients continue to be impacted by increased borrowing costs and higher expenses driven by inflation.

加拿大零售 PCL 為 3.65 億加元，其中 3.43 億加元為減損 PCL。這意味著比上一季增加了 6500 萬美元。加拿大客戶繼續受到通貨膨脹導致的借貸成本增加和費用增加的影響。

PCLs were elevated due to deterioration in the Canadian automotive finance portfolio in the used segment and specific cohorts of variable rate mortgage customers. Specifically, variable rate mortgage customers originated in 2022 have shown signs of stress.

由於加拿大二手汽車金融投資組合和特定可變利率抵押貸款客戶群的惡化，PCL 有所上升。具體來說，2022 年的浮動利率抵押貸款客戶已顯示出壓力跡象。

These clients are largely from the Greater Toronto area and Vancouver. This resulted in an increase of vulnerable customers from 2,700 in Q1 to 3,300 in Q2. Variable rate mortgage portfolio delinquency increased 2 basis points quarter-over-quarter to 28 basis points.

這些客戶主要來自大多倫多地區和溫哥華。這導致弱勢客戶從第一季的 2,700 名增加到第二季的 3,300 名。可變利率抵押貸款組合拖欠率較上月增加 2 個基點，達到 28 個基點。

Our fixed rate mortgage portfolio, representing 68% of balances had stable delinquency performance. We will continue to work through our mortgage and auto clients and have launched several proactive measures across our collections function, including pre-delinquency solutions and new loss mitigation tools.

我們的固定利率抵押貸款組合（佔餘額的 68%）具有穩定的拖欠表現。我們將繼續與抵押貸款和汽車客戶合作，並在我們的催收職能中推出了多項積極措施，包括拖欠前解決方案和新的損失緩解工具。

Turning to International Banking. International Banking PCLs were $566 million, down $8 million from the prior quarter. The Q2 PCL ratio was 138 basis points, up 3 basis points quarter-over-quarter. Our international business banking portfolio continues to perform well with PCLs down slightly from the prior quarter driven by strong performance across the region, slightly offset by continued market deterioration in Colombia.

轉向國際銀行業。國際銀行業務 PCL 為 5.66 億美元，較上一季減少 800 萬美元。第二季PCL比率為138個基點，較上季上升3個基點。我們的國際商業銀行業務組合持續表現良好，由於整個地區的強勁表現，PCL 較上一季略有下降，但被哥倫比亞市場持續惡化所略微抵消。

Retail PCLs were in line with the prior quarter at $485 million, PCLs in Colombia increased offset by stable performance in Mexico, Chile and Peru. Central banks across the region continue to cut policy rates, which should have a positive impact in these markets.

零售 PCL 與上一季持平，為 4.85 億美元，哥倫比亞的 PCL 成長被墨西哥、智利和秘魯的穩定表現所抵消。該地區央行繼續降低政策利率，這應該會對這些市場產生積極影響。

Looking forward to the second half of the year, we expect on a full year basis to remain within our guidance of 45 to 55 basis points. However, we expect to remain at the higher end of the range in the next 2 quarters. In anticipation of a deteriorating environment in fiscal 2024, we increased ACLs from 78 basis points to 85 basis points in Q4 of fiscal 2023.

展望下半年，我們預計全年增速將維持在 45 至 55 個基點的指導範圍內。然而，我們預計未來兩季仍將保持在該區間的高端。由於預計 2024 財年環境將惡化，我們在 2023 財年第四季將 ACL 從 78 個基點提高到 85 個基點。

Additionally, over the last 4 quarters, we have built approximately $585 million in performing allowances. Driving elevated provisions, Canadian credit performance will continue to gradually work through the cycle, and in international markets, we believe credit performance will remain stable throughout the rest of the fiscal year. Overall, we are comfortable with our allowances and continue to manage our portfolios proactively.

此外，在過去 4 個季度中，我們已經建立了約 5.85 億美元的績效津貼。在撥備增加的推動下，加拿大信貸表現將在整個週期中繼續逐步發揮作用，而在國際市場上，我們相信信貸表現將在本財年剩餘時間內保持穩定。總體而言，我們對我們的津貼感到滿意，並將繼續積極管理我們的投資組合。

With that, I will pass it back to John for Q&A.

這樣，我會將其傳回給約翰進行問答。

Great, thank you Phil. Operator please open the line for questions.

太好了，謝謝菲爾。 接線員請打開線路提問。

(Operator Instructions)

（操作員說明）

Operator?

操作員？

(Operator Instructions)

（操作員說明）

The first question is from Ebrahim Poonawala from Bank of America.

第一個問題來自美國銀行的 Ebrahim Poonawala。

I guess maybe a question, Phil, starting with you, just on credit quality. You mentioned impaired PCLs of PCLs at 55 basis points for the back half. Give us a sense of your visibility on credit around do you see things peaking in the back half of the year? And whether 1 or 2 rate cuts from the BOC will make any significant impact, or how we should think about just credit quality as we look beyond the back half and the potential that this could be a lot more work come 2025. And within that, like where do you see the drivers of the lost content within your loan book?

我想也許是一個問題，菲爾，從你開始，只是關於信用品質。您提到後半段 PCL 受損 55 個基點。請讓我們了解一下您的信貸能見度，您認為下半年情況會達到頂峰嗎？以及中國央行 1 或 2 次降息是否會產生重大影響，或者當我們展望下半年之後，我們應該如何考慮信貸質量，以及 2025 年可能需要做更多工作的潛力。可以看到遺失內容的驅動因素？

So I'll guide towards the higher end of the 45 to 55 basis points that we gave in Q4 last year on a full year basis. I think the dynamic within our portfolio is you'll see, as I mentioned earlier, international banking starting to stabilize.

因此，我將指導我們在去年第四季全年基礎上給出 45 至 55 個基點的較高端。我認為我們投資組合的動態是，正如我之前提到的，國際銀行業開始穩定。

And we've seen rate cuts over the last few quarters in international, and those are starting to really bear fruit for and provide relief for our consumers. I'm more thoughtful about what's going on in the Canadian market, and you are seeing the impact of higher for longer really starting to impact, particularly our variable rate mortgage customers and into our auto portfolio, we're seeing friction in those portfolios.

我們在過去幾季中看到了國際市場的降息，這些降息開始真正為我們的消費者帶來成果並緩解壓力。我對加拿大市場正在發生的事情更加深思熟慮，你會看到長期較高的影響真正開始產生影響，特別是我們的可變利率抵押貸款客戶和我們的汽車投資組合，我們看到這些投資組合中存在摩擦。

There's some talk about rate decreases in June and July. I'm of the opinion of those rate even if with those decreases in June, July, it will take a few quarters, maybe 1, 2, 3 quarters for it to start to really support the Canadian consumer. Maybe a little bit of math to help you have some numbers to help just deal with the thought process. On the variable rate mortgage customer, particularly those within Toronto and Vancouver, with the average decrease of 25 basis points or a 25 basis point decrease will lead to about an average decrease in payment of about $100.

有一些關於六月和七月降息的討論。我認為這些利率即使隨著六月、七月的下降，也需要幾個季度，也許一、二、三個季度才能開始真正支持加拿大消費者。也許一點數學知識可以幫助你掌握一些數字來幫助你處理思考過程。對浮動利率抵押貸款客戶來說，尤其是多倫多和溫哥華境內的客戶，平均下降25個基點或下降25個基點將導致平均還款額減少約100美元。

And so as you think about how quickly rate decreases happened, that will provide good relief for the average consumer to start making payments on other products. But I think it's going to take probably 1 to 3 quarters depending on the consumer for it to really bear fruit.

因此，當您考慮利率下降的速度有多快時，這將為普通消費者開始為其他產品付款提供很大的緩解。但我認為，根據消費者的不同，可能需要 1 到 3 個季度才能真正取得成果。

And just on that fill the 25 basis points, should we be looking at the overnight rate, obviously, on the variable rate. But when you think about the rest of the book, overnight versus the 5-year rate? Like how do you think about the sensitivity between the 2? Should we be motoring the yield curve needing to move lower as well as through the BOC rate cuts?

就在這個填充 25 個基點的基礎上，我們是否應該考慮隔夜利率，顯然是可變利率。但是，當您考慮本書的其餘部分時，隔夜利率與 5 年期利率相比又如何呢？您如何看待兩者之間的敏感度？我們是否應該透過央行降息來推動殖利率曲線走低？

I can start and maybe Phil can help. Yes, I think for the variable rate mortgage customer, like you said, the short end of the rate curve is going to have an immediate impact because of our product, and therefore, a benefit in the ranges that Phil talked about. The others, they will benefit based on the longer-term rate. I think most of our renewals we're seeing in the 3-year cohort, fixed rate, so on.

我可以開始，也許菲爾可以幫忙。是的，我認為對於可變利率抵押貸款客戶，就像你說的那樣，由於我們的產品，利率曲線的短端將產生直接影響，因此，菲爾談到的範圍內的好處。其他人將根據長期利率受益。我認為我們看到的大部分續約都是 3 年期、固定利率等。

So as the rate curve moves definitely, it's not going to go down 25 basis points at the long end of the curve. We know that. It might go down something 5, 10 basis points, and that will get reflected in some of the relief that these customers will get at the time of renewal. But I would say it's more meaningful at the short end of the curve for the variable rate mortgage customer.

因此，當利率曲線明顯移動時，它不會在曲線的長端下降 25 個基點。我們知道。它可能會下降 5、10 個基點，這將反映在這些客戶在續約時獲得的一些緩解。但我想說，對於可變利率抵押貸款客戶來說，在曲線的短端更有意義。

The next question is from Doug Young from Desjardins Capital Markets.

下一個問題來自 Desjardins Capital Markets 的 Doug Young。

Phil, looking at Slide 15, you talked about the low -- the decline in the PCL in International Banking, driven by lower retail formations across all countries. And then I flip to Slide 16 and you talked about higher GIL formations driven by higher new retail formations, mainly Chile and Mexico. Just trying to reconcile these 2 statements, I'm a little bit slow this morning, but just trying to kind of understand the movements there.

Phil，請看幻燈片 15，您談到了低點——國際銀行業 PCL 的下降，這是由所有國家零售業的下降所推動的。然後我翻到投影片 16，您談到了更高的 GIL 形態是由更高的新零售形態（主要是智利和墨西哥）推動的。只是想調和這兩個陳述，今天早上我有點慢，但只是想了解那裡的動向。

And then as a follow-up, just -- I just want to clarify, Phil, as well, you're talking about higher end of your 45 to 55 basis point PCL guidance. Is that higher end for Q3, Q4? Or is it the higher end for the full year?

然後，作為後續行動，菲爾，我也想澄清一下，您所說的是 45 至 55 個基點 PCL 指導的高端。第三季、第四季是高端嗎？還是全年的最高值？

So I'll start with your question on Slide 16. And what you see, a lot of our increasing deals this quarter in idea related to Chile commercial real estate. And so given the real estate higher-for-longer situation in that market, we have seen some prolonged stress on the commercial real estate portfolio there.

因此，我將從幻燈片 16 上的問題開始。因此，考慮到該市場房地產長期上漲的情況，我們看到商業房地產投資組合面臨長期壓力。

It's not a big portfolio. It's about $3 billion. And really, the challenge has been the -- for the real estate developers, the cost to complete. What we're seeing in Chile, though, the dynamic has been we've had about 475 basis point reduction in interest rates already. And so we're starting to see the construction starting to come back online. And we're also reassured because we have presales in place for the majority of the lending that we've put in -- that we have there. So it's going to be higher for a little bit longer, but we're not expecting to lose any money there. So that sort of explains the increase in GIL's from that part.

這不是一個大的投資組合。大約是30億美元。事實上，對於房地產開發商來說，挑戰一直是完成成本。不過，我們在智利看到的情況是，我們已經將利率降低了約 475 個基點。因此，我們開始看到施工開始恢復正常。我們也感到放心，因為我們已經為我們投入的大部分貸款進行了預售。因此，它會在更長的時間內保持較高的水平，但我們預計不會在那裡損失任何資金。這可以解釋那部分 GIL 的增加。

In terms of the forecast, we're expecting we'll be at the sort of 54, 45 range for the next 2 quarters. And so I've been speaking more on the quarterly outlook. Sorry, 54 to 55 basis points for the next 2 quarters.

就預測而言，我們預計未來 2 個季度的成長率將在 54 到 45 之間。因此，我更多地談論了季度前景。抱歉，未來 2 個季度為 54 至 55 個基點。

The next question is from Paul Holden from CIBC.

下一個問題來自 CIBC 的 Paul Holden。

I want to continue on the line of questioning of the higher for longer and potential impact on Canadian retail borrowers, specifically on the fixed rate mortgages. Wondering how you're viewing the difference or similarities in potential payment shock for the fixed rate mortgage borrowers versus what you're seeing with the VRM today?

我想繼續質疑更高的利率對加拿大零售借款人的長期影響和潛在影響，特別是對固定利率抵押貸款的影響。想知道您如何看待固定利率抵押貸款借款人與當前 VRM 所面臨的潛在付款衝擊之間的差異或相似之處？

We haven't -- most of the renewals that are coming up on the fixed rate portfolio are those that were originated in 2017. So we haven't been seeing a big volume of fixed rate renewals so far. Maybe it's interesting to note that 70% of the renewals that are coming through right now are opting for a fixed 3-year fixed term.

我們還沒有——固定利率投資組合中的大多數續約都是在 2017 年發起的。也許有趣的是，目前正在進行的續約中有 70% 選擇固定的 3 年固定期限。

What we are looking forward to, though, in terms of as we look into 2025 and 2026, obviously, there's some payment shock anticipated. But we're taking some comfort in terms of how our variable rate mortgage customers are absorbing the shock. We have seen discretionary spend decrease as an example, on our VRM portfolio, those customers' discretionary spend has decreased by about 10%, on retail expenditures year-over-year. And on fixed rate today, it's around 5%.

不過，就我們展望 2025 年和 2026 年而言，顯然預期會出現一些支付衝擊。但我們對浮動利率抵押貸款客戶如何應對衝擊感到有些安慰。例如，我們看到可自由支配支出減少，在我們的 VRM 投資組合中，這些客戶的零售支出比去年同期減少了約 10%。以今天的固定利率計算，約 5%。

So we're already starting to see some consumers making choices in terms of how they're managing their savings. I think I've given this number in prior calls, but we still see our mortgage customers holding on to about 2 payments -- payment buffer within their deposit accounts. And on the fixed rate, it's about 3.5 to 4. So we're still comfortable with the credit quality we're seeing there.

因此，我們已經開始看到一些消費者在如何管理儲蓄方面做出選擇。我想我在之前的電話中已經給出了這個數字，但我們仍然看到我們的抵押貸款客戶持有大約兩筆付款——他們的存款帳戶中的付款緩衝。以固定利率計算，約為 3.5 至 4。

And just as a reminder, the average FICO score that we're seeing at renewal still remains strong at about 768, with 91% of the renewed balances being prime or above on the fixed rate portfolio. Hope that's helpful.

提醒一下，我們在續約時看到的平均 FICO 分數仍然保持在 768 左右的強勁水平，其中 91% 的續訂餘額在固定利率投資組合中處於優質或以上水平。希望有幫助。

The next question is from Matthew Lee from Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Matthew Lee。

One regarding balancing primacy and growth. Canadian loans declined by 1% year-over-year in the quarter. I think part of that was a conscious effort to focus capital on areas you achieved primacy. Should we still be expecting to see accelerating loan growth in the back half of the year, maybe particularly on the mortgage front?

一個關於平衡首要地位和成長的問題。本季加拿大貸款年減 1%。我認為其中一部分是有意識地將資本集中在您已取得主導地位的領域。我們是否仍然應該期望看到下半年貸款成長加速，尤其是在抵押貸款方面？

Matthew, it's Aris here. Just to give a little context. So on a spot basis in the quarter, we grew our mortgage book by around 2 billion, and we continue to grow our credit card book, our unsecured lending book. But where we see challenges is on the auto book, as Phil alluded to, actually, the auto book, the retail business is actually down 14% year-on-year in terms of originations. But we're slowly seeing now the pipeline for mortgages will continue to go up.

馬修，我是阿里斯。只是提供一些背景資訊。因此，在本季的現貨基礎上，我們的抵押貸款帳簿增加了約 20 億美元，並且我們的信用卡帳簿和無擔保貸款帳簿繼續增加。但我們看到的挑戰是在汽車書籍方面，正如菲爾所提到的那樣，實際上，在汽車書籍方面，零售業務的起源實際上比去年同期下降了 14%。但我們現在慢慢地看到抵押貸款管道將繼續增加。

We're trying to stay extremely focused on what you've heard Scott say often this value versus volume. And just to give you a bit of background on that. So 70% of our new mortgage originations are coming with 3 or more products. And actually, in April, that number was approaching 80% across all channels.

我們正努力高度關注您經常聽到斯科特所說的價值與數量的關係。只是為了向您提供一些背景知識。因此，我們 70% 的新抵押貸款發放都包含 3 種或更多產品。事實上，4 月份，所有管道的數字都接近 80%。

That's one fact. The other fact is renewals. We're hitting a very high level of renewals now passing over 80% of renewals for the second quarter for our mortgages. These are the originations or the business we like to book for obvious reasons. So we're going to see continued mortgage growth in the second half of the year, obviously predicated on how rates go.

這是一個事實。另一個事實是續約。我們的抵押貸款續約率達到了非常高的水平，目前已超過第二季 80% 以上。這些是我們喜歡預訂的起源或業務，原因顯而易見。因此，我們將看到下半年抵押貸款持續成長，這顯然取決於利率的走勢。

But even if rates come down, we will continue to stay disciplined on getting multiproduct mortgage customers at origination and again focusing on renewals. The auto book will continue to be stressed. We're actually pulling back on used car, on non-subvented and where we'll see some growth will be in the subvented new car business as more new cars come on stream with our dealers.

但即使利率下降，我們仍將繼續嚴格要求在發起時吸引多產品抵押貸款客戶，並再次專注於續約。汽車圖書將繼續受到壓力。實際上，我們正​​在減少二手車和非補貼汽車，隨著更多新車在我們的經銷商處投入使用，我們將看到補貼新車業務將出現一些增長。

In terms of credit cards, we'll continue to grow double digit, the balances. But again, our credit card is not a monoline business. It's actually a cross-sell product where 80% of our new originations in credit card are coming from existing customers and Scene+. So hopefully that gives you a bit of a background.

在信用卡方面，我們的餘額將繼續增加兩位數。但同樣，我們的信用卡並不是單一業務。它實際上是一種交叉銷售產品，我們 80% 的信用卡新產品都來自現有客戶和 Scene+。 希望這能為您提供一些背景知識。

The next question is from John Aiken from Jefferies.

下一個問題來自傑富瑞 (Jefferies) 的約翰艾肯 (John Aiken)。

Wanted to dive into the appendix, actually, Slide 28, if I may, declining balances in commercial and corporate lending, international, not terribly surprising. But in context, we're actually seeing a shift away from investment grade to noninvestment grade. First part of this is, is this just simple credit migration where some of the former investment grade has slipped into noninvestment grade given what's going on in the region.

我想深入了解附錄，實際上，幻燈片 28（如果可以的話），國際商業和企業貸款餘額的下降並不令人意外。但在上下文中，我們實際上看到了從投資等級轉向非投資等級的轉變。第一部分是，這只是簡單的信貸遷移，考慮到該地區正在發生的情況，一些先前的投資等級已經滑落到非投資等級。

And second part of the question, when do we think we can actually start to see the reversion of that in growth because presumably you're looking to grow the investment-grade part of the business? Or do I have that strategy incorrect?

問題的第二部分，我們認為我們什麼時候可以真正開始看到成長的逆轉，因為大概您正在尋求成長業務的投資等級部分？還是我的策略不正確？

Yes, I can start, John, it's Raj. What you're seeing in investment and noninvestment grade has got both qualities what you described. Yes, there is some level of migration that is happening both on the GBM book as well as in the international commercial book, we actually see it in the capital where we see nonretail migration for obvious reasons, right? High inflation, low growth in all these economies, high interest rates has got some impact.

是的，我可以開始了，約翰，我是拉傑。您所看到的投資等級和非投資等級具有您所描述的兩種品質。是的，在 GBM 書籍和國際商業書籍中都發生了一定程度的移民，我們實際上在首都看到了這種情況，出於明顯的原因，我們看到了非零售移民，對嗎？所有這些經濟體的高通膨、低成長、高利率都產生了一些影響。

The numbers that you see is actually in small, right? I mean it's moving from 40% to 39% in investment grade and 60% to 61% in noninvestment grade. There's no deliberate strategy over here. It's how we are going to deselect clients and those clients who we believe we are not getting the appropriate return, we are trying to pull back on capital from a capital perspective.

你看到的數字其實很小，對嗎？我的意思是，投資等級的比例從 40% 上升到 39%，非投資等級的比例從 60% 上升到 61%。這裡沒有刻意的策略。這就是我們將如何取消選擇客戶以及我們認為我們沒有獲得適當回報的客戶，我們正試圖從資本角度撤回資本。

And International Banking, as you know, every 3 months, we have the ability to reprice, if you want to keep the client or reprice if you want to exit the client. So we have used that in the past, we continue to use it as -- we have a finite amount of capital that International Banking has and they're making the right choices to improve the returns. You can see some early reference to which Scott made reference in his comments talking about ROE, how it's improved beyond 15% now.

而國際銀行業務，如您所知，如果您想留住客戶，我們有能力每 3 個月重新定價一次；如果您想退出客戶，我們有能力重新定價。因此，我們過去已經使用過它，我們將繼續使用它，因為我們國際銀行業擁有有限的資本，而他們正在做出正確的選擇來提高回報。您可以看到 Scott 在談論 ROE 的評論中提到的一些早期參考內容，以及現在它如何提高到 15% 以上。

These are all contributors to the outcome, which is to have a more profitable business. But there's no significant shift that you should expect to see even going forward. It's just a small shift based on a couple of factors.

這些都是對結果的貢獻，即擁有更有利可圖的業務。但即使是未來，也不會有重大轉變。這只是基於幾個因素的小轉變。

The next question is from Gabriel Dechaine from National Bank Financial.

下一個問題來自國家銀行金融公司的加布里埃爾·德鏈 (Gabriel Dechaine)。

Just a couple here. On international, a good NIM expansion this quarter. But with the rate cuts that we've seen across the region, how do you expect that to evolve in the coming quarters? And then on the credit side. Look, there's a lot of ways to slice and dice the evaluation of your provisions but one thing I look at is the performing ACL ratio today versus pre-COVID historical reasons, I guess. And it's pretty flat for Scotia. Your peers have more of a buffer above that pre-COVID level.

這裡只有一對夫婦。在國際方面，本季淨利差擴張良好。但隨著我們在整個地區看到降息，您預計未來幾季會如何發展？然後是信用方面。看，有很多方法可以對您的供應品進行評估，但我認為我關注的一件事是今天執行的 ACL 比率與新冠疫情之前的歷史原因相比。對於斯科細亞省來說，情況相當平坦。你的同儕比新冠疫情前的水平有更多的緩衝。

Given what you've highlighted as far as some of the challenges your customers are facing, this is across the industry, of course, but your book, in particular, in the auto book, is it possible that we could see another bump up required to that performing ACL ratio just because of everything that's going on?

鑑於您所強調的客戶面臨的一些挑戰，當然這是整個行業的挑戰，但您的書，特別是在汽車書籍中，我們是否有可能看到需要的另一個提升僅僅因為發生的一切就導致執行ACL 比率？

Gabe, it's Raj. I'll start on NIM and Francisco might have a comment or 2 to follow me and then Phil will take over on the performing ACL ratio. International Banking NIM, Gabe, you probably followed me quite a bit. A number of countries, multiple factors that moved the NIM up and down, inflation is a factor and so on. This quarter, the benefit came primarily from reduction in cost of funds.

加布，我是拉傑。我將從 NIM 開始，Francisco 可能會有一兩個評論關注我，然後 Phil 將接管執行 ACL 比率。國際銀行 NIM，Gabe，你可能很關注我。許多國家、多種因素導致淨利差上下波動，通貨膨脹是一個因素等等。本季的收益主要來自資金成本的降低。

And we had a significant cut in rates, particularly in Chile and Peru that we looked at. Peru's NIM is up 15 basis points. Chile is up 8 basis points, and even Colombia is up 41 basis points for the same reason. So that thing, I think it's largely done. You'll see some marginal benefits over there, but I think most of it's baked into the 447 basis points. That is about 2, 3 basis points in the 447, which is inflation related, which we know we will give up in Chile.

我們大幅降低了利率，特別是在我們研究的智利和秘魯。秘魯的淨利差上升 15 個基點。智利上漲了 8 個基點，甚至哥倫比亞也因為同樣的原因上漲了 41 個基點。所以，我認為這件事基本上已經完成了。你會看到一些邊際效益，但我認為大部分都體現在 447 個基點中。這大約是 447 的 2、3 個基點，這是與通貨膨脹相關的，我們知道我們將在智利放棄這一點。

So maybe look at it as 445. And then it will bob around as International Banking NIM always does because of multiple factors. I think somewhere around that to maybe 450 is the top end, at least over the next 2 quarters because we're not expecting meaningful rate cuts like we've seen in the last 2 or 3 quarters. So that would be my sense of how the NIM will behave looking forward.

因此，也許可以將其視為 445。我認為大約 450 左右是上限，至少在接下來的兩個季度是這樣，因為我們預計不會像過去兩個或三個季度那樣出現有意義的降息。這就是我對 NIM 未來表現的看法。

I would agree, Raj. This is Francisco. I think the one, the laggard is Mexico, we expect Mexico to cut rates much later and much slower. So that will be the remaining benefit, but we don't believe that's going to happen in the second half of the year, but rather a 2025 event.

我同意，拉吉。這是弗朗西斯科.我認為，落後者是墨西哥，我們預計墨西哥降息的時間會晚得多，而且要慢得多。所以這將是剩下的好處，但我們認為這不會在今年下半年發生，而是在 2025 年發生。

Gabe, Phil here. I hope you're well. So maybe just on the ACL question you asked. If you recall, we did do a large performing build in Q4 last year, and we did it on both the business banking side and on the Canadian retail, just in anticipation of some of the headwinds we expected for fiscal 2024.

加布，菲爾在這裡。我希望你很好。所以也許只是關於你問的 ACL 問題。如果你還記得的話，我們去年第四季確實進行了大規模的績效建設，我們在商業銀行方面和加拿大零售業都這樣做了，只是為了預期我們預計 2024 財年會出現一些阻力。

If I were to go back to look at Q1 '20, we were at 82 basis points. We're at 88 basis points this quarter. So I feel, given where we are, given the level of build that we've done over the past 4 quarters, I'm comfortable with the level of allowances that we have. Will we increase performing allowances as we go forward? It's going to depend on how the macroeconomic scenario plays out, and we'll be guided by that.

如果我回頭看看 20 年第一季，我們的利率是 82 個基點。本季我們的利率為 88 個基點。因此，我覺得，考慮到我們目前的處境，考慮到我們過去四個季度所做的建設水平，我對我們擁有的津貼水平感到滿意。隨著我們的發展，我們會增加績效津貼嗎？這將取決於宏觀經濟情勢如何發展，我們將以此為指導。

That guidance range you gave -- sorry, that was for impaired or total, the 45 to 55?

您給出的指導範圍 - 抱歉，這是針對受損或總體的，45 到 55？

That's for total.

這是總計。

The next question is from Mario Mendonca from TD Securities.

下一個問題來自道明證券的 Mario Mendonca。

Probably for Raj. The capital ratio looks pretty healthy now north of 13.2%. You may have discussed this somewhere in the presentation or in the material. I may not have seen it yet. Can you update us on what your intentions are with the DRIP? Most of your peers, I think all of your peers have dropped the DRIP, so I'm interested in your outlook there.

可能是為了拉吉。目前資本比率看起來相當健康，超過 13.2%。您可能在簡報或材料中的某個地方討論過這個問題。我可能還沒看到。您能否向我們介紹一下您對 DRIP 的最新意圖？你們的大多數同行，我想你們所有的同行都放棄了 DRIP，所以我對你們的前景感興趣。

Sure, Mario. Capital ratio, yes, definitely healthy at 13.2% reflects a lot of the actions that we have taken, and we will continue to take as we pivot away from lower profitable segments and businesses to higher profitable segments. So we're seeing good returns over there on the efforts that we've made.

當然，馬裡奧。是的，13.2% 的資本比率絕對是健康的，這反映了我們已經採取的許多行動，當我們從利潤較低的部門和業務轉向利潤較高的部門時，我們將繼續採取行動。因此，我們看到我們所做的努力得到了良好的回報。

So the capital build has been really good, particularly over the last 2 quarters, and we're very pleased with the results from all the initiatives that we talk about, which we call as RWA optimization initiatives. We previously indicated that our intention was to turn off the DRIP in the second half of the year.

因此，資本建設非常好，特別是在過去兩個季度，我們對我們談論的所有舉措（我們稱之為 RWA 優化舉措）的結果感到非常滿意。我們之前表示，我們的意圖是在今年下半年關閉 DRIP。

Our intention still remains the same. We are quite motivated to doing that. And that's what you should expect from us in the second half of the year to turn off the DRIP. But right now, it is still on.

我們的意圖仍然是一樣的。我們非常有動力去做。這就是您應該期望我們在今年下半年關閉 DRIP 的情況。但現在，它仍然在進行。

Okay. And then again, this is something I may have missed. I thought the cadence for dividend increases was every Q2. But again, I may have missed this, I don't see a dividend increase this quarter.

好的。話又說回來，這可能是我錯過的事。我認為股息增加的節奏是每個第二季。但同樣，我可能錯過了這一點，我沒有看到本季的股息增加。

No, you haven't missed anything, Mario, as always. I think yes, there is no dividend increase this quarter. It's part of what we're thinking is we do want to grow dividends in line with our earnings growth, which we know is going to happen in 2025, rate situation and other stuff to contribute it.

不，你沒有錯過任何事情，馬裡奧，一如既往。我認為是的，本季沒有增加股息。我們的想法之一是，我們確實希望根據我們的獲利成長（我們知道這將在 2025 年發生）、利率狀況和其他因素來增加股息。

So we decided that it's better to take a pause at this time and we should start commencing our dividend increases in 2025 in line with what we do every year in the second quarter.

因此，我們決定現在最好暫停一下，我們應該在 2025 年開始增加股息，與每年第二季的做法一致。

The next question is from Lemar Persaud from Cormark Securities.

下一個問題來自 Cormark Securities 的 Lemar Persaud。

Maybe turning to Aris on a question on Canadian Banking. This cessation of SEDAR, is that going to weigh on noninterest income in Canadian Banking? Because like I noticed the net fee and commission income dropped to $619 million this quarter, but it's been kind of stable in the north of 630, mid 640 range throughout 2023. So I'm wondering if that's going to be a headwind you have -- you're going to see play out for the next couple of quarters.

也許可以向阿里斯詢問有關加拿大銀行業的問題。 SEDAR 的終止是否會對加拿大銀行業的非利息收入造成壓力？因為就像我注意到本季的淨費用和佣金收入下降至 6.19 億美元，但整個 2023 年一直穩定在 630 北部、640 中部範圍內。會看到接下來幾季的比賽結果。

Lemar, it's Raj. How about I start and then Aris might have a couple of comments on this. Yes, absolutely. As we turn off the SEDAR and the acceptances level starts going down, which should happen in an accelerated manner in Q3, yes, the noninterest revenue will go down, but it doesn't impact total revenue. It's kind of a geography that moves within noninterest revenue and NII.

勒馬爾，我是拉吉。我開始吧，然後阿里斯可能會對此發表一些評論。是的，一點沒錯。當我們關閉 SEDAR 且接受水準開始下降時（這應該在第三季加速發生），是的，非利息收入將會下降，但不會影響總收入。這是一種在非利息收入和國家資訊基礎設施內移動的地理區域。

So we don't have the stamping fees but we pick it up through the NII line. And as you may know, some of these acceptances tend to be at lower margins. So as they come up for renewals, it will be a tailwind to the margin of the Canadian bank and to the bank as a whole, not necessarily in Q3, but as they come up for renewal.

所以我們沒有印花費，但我們透過 NII 線領取。如您所知，其中一些承兌匯票的利潤率往往較低。因此，當他們進行續約時，這將是加拿大銀行和整個銀行的利潤的順風，不一定是在第三季度，但當他們進行續約時。

So that's the change you should expect to see. The part of the noninterest revenue, the Canadian bank is also down because we have lost the Canadian Tire Financial services income, which is between $16 million to $18 million a quarter. But that shift will happen just between revenue for the acceptances part of the business, but not necessarily impacted total revenue in any meaningful manner.

這就是您應該看到的變化。非利息收入部分，加拿大銀行也下降了，因為我們失去了加拿大輪胎金融服務收入，每季在1600萬至1800萬美元之間。但這種轉變只會發生在業務承兌部分的收入之間，但不一定會以任何有意義的方式影響總收入。

And just to add, Up to now, it's been 1/3 we've converted the BAs into loans, and that has obviously impacted the NIR. But again, as Raj said, the net interest income going up. By September, the remaining part of the BAs will be converted. These are not able to reprice like the earlier ones, so we'll see a bit of pressure on the NIM as that conversion takes place.

補充一點，到目前為止，我們已經將 1/3 的 BA 轉換為貸款，這顯然對 NIR 產生了影響。但正如拉傑所說，淨利息收入再次上升。到9月份，剩餘部分的BA將被轉換。這些無法像早期的那樣重新定價，因此隨著轉換的發生，我們將看到 NIM 面臨一些壓力。

Okay. So net-net, it's just a -- we should expect it to be kind of a shift from NIR into NII?

好的。那麼網絡網絡，這只是——我們應該期望它是從 NIR 到 NII 的轉變？

That's right, Lemar. It shouldn't be meaningful. It's a $20 billion portfolio compared to the $440 billion we have in the business, but it will have some impact as it transitions away.

沒錯，勒馬爾。應該沒有什麼意義。與我們 4,400 億美元的業務相比，這是一個 200 億美元的投資組合，但隨著它的轉變，它將產生一些影響。

The next question is from Mike Rizvanovic from KBW Research.

下一個問題來自 KBW Research 的 Mike Rizvanovic。

I have a question for Raj, and I want to talk about the corporate segment loss, and just in light of Scott's comments at the outset, it sounds like your view on the number of rate cuts has certainly changed. And so if you think about medium term, I'm trying to get a sense of the reasonable trajectory that we should expect on that loss.

我有一個問題要問拉吉，我想談談企業部門的損失，鑑於斯科特一開始的評論，聽起來你對降息次數的看法肯定已經改變了。因此，如果你考慮中期，我會試著了解我們應該預期的損失的合理軌跡。

So I'm guessing it's not going to be $400 million plus. But if you think about say exiting in 2025, so 6 quarters from now, does this go down to something like sub 300? And if that's the case, what do we need to see on the -- maybe the shape of the yield curve to get you there?

所以我猜它不會超過 4 億美元。但如果你考慮在 2025 年退出，也就是從現在起 6 個季度後，這個價格是否會下降到 300 以下？如果是這樣的話，我們需要在殖利率曲線的形狀上看到什麼才能實現這一目標？

Yes, the other segment this quarter, just to clarify, it benefited because of mark-to-market adjustments. And I believe for the second half of the year, unless rate cuts happen different than what we're expecting, which is only 1 rate cut we are expecting now in the second half of the year in Canada will remain around $450 million to $475 million loss range, unless we benefit again from some late mark-to-market benefits like I saw this quarter.

是的，本季的另一個部分，只是為了澄清一下，它受益於按市值計算的調整。我相信下半年，除非降息發生與我們預期不同，我們現在預計加拿大下半年只有 1 次降息，否則降息將保持在 4.5 億至 4.75 億加元左右損失範圍，除非我們再次受益於一些後期按市值計價的收益，就像我在本季看到的那樣。

But to answer your question on trajectory, it will follow the trajectory of rate cuts, Mike, because the benefits of the rate cuts will show up in the other segment for us because the business line is compensated through the transfer pricing arrangements that we have to remove the volatility in the business line results. Each rate cut this time we have put out one additional disclosure in the appendix slide where we said a 25 basis point cut at the short end of the curve gives us about $100 million in NII benefit in a full year.

但要回答你關於軌蹟的問題，它將遵循降息的軌跡，邁克，因為降息的好處將在我們的另一個領域顯現出來，因為業務線是通過我們必須的轉讓定價安排得到補償的。結果的波動性。這次每次降息，我們都會在附錄幻燈片中進行額外披露，其中我們表示，曲線短端降息 25 個基點將為我們帶來全年約 1 億美元的 NII 收益。

So it gives you a little bit of perspective of how many rate cuts and how that could play out for the other segment next year. The more meaningful one, Mike, is to look at our fixed rate mortgages that is coming up for renewal in 2025 you can make some assumptions saying what could be the pickup in the yield that will show up in the other segment because the spread will remain constant in the business.

因此，它讓您對明年的降息次數以及降息對其他領域的影響有一些了解。麥克，更有意義的是看看我們將於 2025 年更新的固定利率抵押貸款，您可以做出一些假設，說明另一部分的收益率可能會出現什麼上升，因為利差將保持不變業務中不斷。

But it also has to be offset by some of the GICs, which are coming up for renewal. Even this quarter in the Canadian bank, we saw GIC renewals impacted their NIM by about 2 basis points. So there is a dynamic between fixed rate borrowings that we have in fixed rate mortgages that will come up for renewal, that should help, if we have reasonable rate cuts call it 4 rate cuts, right, through to 2025, I would see that the other segment will not start with the 4.

但它也必須被一些即將更新的擔保投資證書所抵消。即使在本季度，我們也看到這家加拿大銀行的 GIC 續約對其淨利差產生了約 2 個基點的影響。因此，我們在固定利率抵押貸款中的固定利率借款之間存在動態變化，這應該會有所幫助，如果我們有合理的降息，稱之為4 次降息，對吧，到2025 年，我會看到其他段落不會以 4 開頭。

The quarterly loss should be meaningfully lower. But it's tough to provide an estimate, like we said, it depends on how the various parts of the rate curve move right from the short end all the way to 5 years, but it should be a meaningful benefit in 2025 through the other segment.

季度虧損應該會顯著降低。但很難提供一個估計，就像我們所說的，這取決於利率曲線的各個部分如何從短期端一直向右移動到5 年，但到2025 年，通過其他部分應該會帶來有意義的收益。

That's super helpful. So it's rate cuts, Bank of Canada and not necessarily the shape of the yield curve that would drive that?

這非常有幫助。那麼是加拿大央行的降息而不一定是殖利率曲線的形狀推動了這一點？

Yes. I'm assuming that the rate cuts obviously benefit the short end of the curve. Hopefully, there's not a parallel shift. I don't think any of us expect that because the rate curve was inverted. So the long end of the curve should go down meaningfully lower than the 25 basis point rate cut we might see at the short end of the curve. So we might lose something at the 3-year and 5-year point, but the significant benefit will come from the short end.

是的。我認為降息顯然有利於曲線的短端。希望沒有平行轉變。我認為我們中沒有人會想到這一點，因為利率曲線是倒掛的。因此，曲線長端的降息幅度應顯著低於我們可能在曲線短端看到的 25 個基點的降息幅度。因此，我們可能會在 3 年和 5 年的時間點上損失一些東西，但顯著的收益將來自短期的結果。

If I could just squeeze one more in for Aris on Canadian Banking. Just wanted to ask about -- it sounds like you're getting a bit of traction on those more fulsome relationships, which is now your strategy. On the cost side, I'm just wondering, is that something that near term could result in a bit of expense inflation? I'm not sure how much incentives play a part in getting that customer to become more of a fulsome customer for the bank. Any thoughts on near-term expense?

如果我能為阿里斯再擠一點關於加拿大銀行業的內容就好了。只是想問一下——聽起來你對那些更充實的關係有了一些吸引力，這就是你現在的策略。在成本方面，我只是想知道，短期內這是否會導致一定程度的費用上漲？我不確定有多少激勵措施可以讓該客戶成為銀行更滿意的客戶。對近期開支有什麼想法嗎？

Let me -- just on the primary, just to give a bit of background before I get to your question. So on primary, what we're doing is at the point of sale, we're much more deliberate in the types of customers we want to bring in to the banks.

讓我——只是簡單地談談主要問題，在回答你的問題之前先介紹一下背景知識。因此，首先，我們正在做的是在銷售點，我們對想要為銀行引入的客戶類型更加深思熟慮。

So again, having multiproduct acquisition at the point of sale, I talked about mortgage but it's also in generally in our acquisition, in our branch network. The mortgage plus, as you know, I discussed when we book mortgages, we're looking for the multiproduct day to day banking, additional products along with the mortgage and then, again, the advisory getting more products.

因此，在銷售點進行多產品收購時，我談到了抵押貸款，但它通常也存在於我們的收購和我們的分行網路中。如您所知，抵押貸款加，我在預訂抵押貸款時討論過，我們正在尋找多產品日常銀行業務、抵押貸款之外的其他產品，然後再次獲得更多產品的諮詢。

So as you can imagine, getting more products to our customers, they're more engaged with us. There could be additional, of course, interactions and costs with that. But again, in parallel, as you know, and you see that a bit on the cost side, is we're digitizing our business. We're looking to take costs out by digitizing end-to-end digitizing, onboarding digitizing, and that's where our investments are going.

因此，正如您可以想像的那樣，向我們的客戶提供更多產品，他們就會更積極地與我們互動。當然，這可能會產生額外的相互作用和成本。但同樣，正如您所知，您將看到，在成本方面，我們正在將業務數位化。我們希望透過數位化、端到端數位化、入門數位化來降低成本，這就是我們的投資方向。

Despite the good management on the cost side, there's a lot of work going on behind the scenes on how we're going to digitize this business in line with what I talked about at the Investor Day.

儘管在成本方面有良好的管理，但根據我在投資者日談到的內容，我們在幕後正在進行大量工作，以了解如何將這項業務數位化。

So yes, get more engaged customers, they'll be interacting with you more, but you'll obviously drive more revenues, and there, the operating leverage will continue to be strong. That's the whole thesis behind it.

所以，是的，吸引更多的客戶，他們會與你進行更多的互動，但你顯然會帶來更多的收入，而且營運槓桿將繼續保持強勁。這就是其背後的整篇論文。

The next question is from Nigel D'Souza from Veritas Investment Research.

下一個問題來自 Veritas Investment Research 的 Nigel D'Souza。

I wanted to follow up on the variable rate mortgages but from a different perspective. I think you mentioned those were 2022 vintages. So would you be able to shed some light on the LTVs for those mortgages? And what I'm getting at here is where those mortgages under water and your 100% LTV. There wasn't a payment, you have an adjustable payment structure.

我想從不同的角度跟進浮動利率抵押貸款。我想你有提到那些是 2022 年的年份。那麼您能透露一下這些抵押貸款的 LTV 嗎？我在這裡想說的是，那些抵押貸款和你的 100% LTV 都已經水深火熱了。沒有付款，您有一個可調整的付款結構。

And is there a correlation ultimately between the amount of equity and the LTV on that portfolio and the delinquencies and impairments you're seeing in that book?

該投資組合的股本金額和 LTV 與您在那本書中看到的拖欠和減值之間最終是否存在相關性？

Nigel, it's Phil. Our average LTV on that portfolio is in the 50%, so it is quite low. At origination, the average FICO for those products were 800, and so it is quite a strong credit quality portfolio. I think as I pointed to in my prepared remarks earlier, that the friction is really coming from Toronto, GTA and Vancouver, where you're seeing -- where you had higher cost on the mortgage.

奈傑爾，我是菲爾。我們該投資組合的平均 LTV 為 50%，因此相當低。最初，這些產品的平均 FICO 為 800，因此這是一個相當強大的信用品質投資組合。我認為，正如我在之前準備好的演講中指出的那樣，摩擦實際上來自多倫多、大多倫多地區和溫哥華，你會看到這些地方的抵押貸款成本更高。

And I think people are just in the process now of given the higher for longer rates, they're making trade-offs in terms of their payments, and maybe they got a little bit over their skis at point of origination. But these are good customers that are just facing a little bit of tightness in terms of their cash flow.

我認為人們現在正處於長期利率較高的過程中，他們在付款方面進行權衡，也許他們在起源時有點超出了他們的滑雪板。但這些都是好客戶，只是現金流有點緊張。

We've been really focused on the collections efforts, and we've been doing a lot of proactive outreach to these individuals. It's not as if we have a bad customer here, just customers has sort of going through a life event or having just some difficulties making some payments to pay. We've expanded our proactive outreach to these customers, and we've implemented a number of loss mitigation programs to help them through this stressful period.

我們一直非常關注收集工作，並且一直在對這些人進行大量主動外展活動。這並不是說我們這裡有一個不好的客戶，只是客戶經歷了一些生活事件或在付款時遇到一些困難。我們已經擴大了對這些客戶的主動聯繫，並實施了許多減少損失的計劃，以幫助他們度過這段充滿壓力的時期。

So you're saying there's no correlation between LTV and delinquency rates?

那麼您是說 LTV 和拖欠率之間沒有相關性？

No, it's tough to hear you, but I think the answer to your question is a no.

不，很難聽到你的聲音，但我認為你的問題的答案是否定的。

And then just a quick follow-up on the NII sensitivity. I noticed that, yes, there's a $100 million benefit for a 25 basis point decrease, but I believe there's a decline in NII for a 100 basis point decrease in rates. So just wondering what's driving that dynamic in your hedging program where there's a benefit for a 25 basis point decrease, but then there's a negative impact for 100?

然後快速跟進 NII 敏感度。我注意到，是的，利率下降 25 個基點會帶來 1 億美元的收益，但我相信利率下降 100 個基點會導致 NII 下降。那麼，想知道是什麼推動了您的對沖計劃的動態，即降低 25 個基點會帶來好處，但降低 100 個基點就會產生負面影響？

That's actually a simple answer, because one of it is a parallel shift, right? Unless we believe that there's going to be a complete parallel shift up and down in an inverted rate environment, yes, the 100 basis points, plus or minus, like we say, will happen. But that's not what we expect. I think what's more meaningful is the short end of the curve.

這實際上是一個簡單的答案，因為其中之一是平行移位，對吧？除非我們相信在利率倒掛的環境中將會出現完全平行的上下變化，否則，就像我們所說的那樣，100 個基點，無論是加還是減，都會發生。但這不是我們所期望的。我認為更有意義的是曲線的短端。

So that's the distinction between the two but I'm happy to go into more detail with you one-on-one. You think you have more follow-up questions on that topic.

這就是兩者之間的區別，但我很高興與您一對一地詳細討論。您認為您對主題還有更多後續問題。

Raj, it's also important to note is the sensitivity disclosure that we've had $100 million for 25 basis points doesn't include the asset repricing.

Raj，還要注意的是，我們在 25 個基點上獲得 1 億美元的敏感度揭露並不包括資產重新定價。

It does not.

它不是。

And so the tailwind here for the bank in the scenario where rates come down is pretty significant.

因此，在利率下降的情況下，銀行的順風車是相當大的。

The next question is from Darko Mihelic from RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場 (RBC Capital Markets) 的達科·米赫利奇 (Darko Mihelic)。

I'm just wondering, Raj, if you can spend a little bit more time to elaborate on the capital floor add on and specifically, you suggested that it was eliminated because of changes in book quality and model update, and I think I heard you say that there is more work to be (inaudible) when the floor kicks back in again. And what it is precisely that you're doing with respect to model updates?

我只是想知道，Raj，您是否可以花更多時間來詳細說明資本樓層附加功能，具體來說，您建議由於書籍質量和模型更新的變化而將其刪除，我想我聽到了您的聲音說當地板再次恢復時還有更多工作要做（聽不清楚）。您在模型更新方面到底做了什麼？

I missed part of your question, you got cut off, but I think I got what you're looking for, impact at the end of Q1 of the floor was $7.8 billion, approximately 23 basis points, if you recall. As I also mentioned previously, the floor impact inherently will move due to a number of factors.

我錯過了你的部分問題，你被打斷了，但我想我得到了你想要的東西，第一季末的影響是 78 億美元，大約是 23 個基點，如果你還記得的話。正如我之前提到的，地板影響本質上會因為多種因素而改變。

Movement in ARB capital relative to the standardized equal and movement in ACL versus GL. So a lot of things impact the floor, unfortunately, which makes it very difficult to follow from a quarter-to-quarter perspective.

ARB 資本相對於標準化資本的變動以及 ACL 相對於 GL 的變動。不幸的是，許多因素都會影響市場，這使得從季度到季度的角度進行追蹤變得非常困難。

But I'll call out 2 of the things, 1 of which you touched on, which impacted the elimination of the flow this quarter, one is client deselection. The way we have worked about client deselection, when we think about profitability, we have tried to calculate it or recalculate it based on 72.5% floor because that's ultimately where we're going to land up and see if the client will continue to remain profitable.

但我會指出其中兩件事，其中一件是你提到的，這影響了本季流量的消除，其中之一是客戶取消選擇。我們處理客戶取消選擇的方式，當我們考慮盈利能力時，我們嘗試根據 72.5% 的下限來計算或重新計算，因為這是我們最終要確定的地方，看看客戶是否會繼續保持盈利。

So the focus of the business across all 3 business lines is to look at those clients who will not be profitable under the standardized 72.5% risk-weighted asset capital requirements. So they've been deselecting those clients, which has the greatest impact and therefore, benefits the floor when we look at it from period to period.

因此，所有 3 個業務線的業務重點是專注於那些在標準化 72.5% 風險加權資產資本要求下無法獲利的客戶。因此，他們一直在取消選擇那些影響最大的客戶，因此，當我們從一個時期到另一個時期觀察時，這些客戶對市場有利。

The more important thing that impacted this quarter is model changes of $4.5 billion that impact AR BRWA only and does not impact the standardized calculation. It's split 2 ways. One I would call out as just parameter changes. Constantly, we look at our probability of defaults for our customers based on market info, own performance and so on.

本季影響更重要的是 45 億美元的模型變更，僅影響 AR BRWA，不影響標準化計算。它分為兩種方式。我將其稱為參數更改。我們不斷地根據市場資訊、自身表現等來審視客戶違約的可能性。

So that resulted and there was some migration too in the nonretail book like I pointed out on a different question, which increased the AR BRWA, which is obviously insensitive under the standardized calculation. The other component is an LGD methodology change we actually put through.

因此，正如我在另一個問題上指出的那樣，非零售書中也出現了一些遷移，這增加了 AR BRWA，這在標準化計算下顯然不敏感。另一個組成部分是我們實際進行的 LGD 方法變更。

And so that impacted it $4.5 billion, the PD changes or the parameter changes, which we call book quality, impacted a little over $4.5 billion. It just added up to $7.8 billion, which was our floor.

因此，這影響了 45 億美元，PD 變化或參數變化，我們稱之為圖書質量，影響了略高於 45 億美元。加起來就是 78 億美元，這是我們的下限。

Every quarter, Darko, unfortunately, you're going to see this move around. The floor should not get engaged in Q3, Q4 for sure because it has -- directionally it's supposed to go the other way based on the actions we are taking. But again, Q1 '25 is going to be a 2.5% floor. We'll see how we trend up towards that, and we'll update you on what could be the impact in Q1 '25 as well as in Q1 '26.

不幸的是，達科，每個季度你都會看到這種變化。與會者肯定不應該參與第三季度、第四季度，因為它已經——根據我們正在採取的行動，它應該朝相反的方向發展。但同樣，25 年第一季的下限將是 2.5%。我們將了解這一趨勢如何發展，並將向您通報 25 年第 1 季以及 26 年第 1 季可能產生的影響的最新情況。

Our capital plans looking forward through to 2026 comfortably cover all these impacts as we think about what are the minimum ratios we'd like to run and how we can support the business growth. So we feel pretty good about where we are today and the impact of the actions we have taken on our capital ratios.

當我們考慮我們希望運行的最低比率以及如何支持業務成長時，我們展望 2026 年的資本計劃輕鬆涵蓋了所有這些影響。因此，我們對目前的狀況以及我們所採取的行動對資本比率的影響感到非常滿意。

I appreciate that. And one last quick one in here. Would it be reasonable for next quarter to get some sort of an estimate on the possible impact of the minimum tax?

我很感激。這裡還有最後一個快速的。下個季度對最低稅可能產生的影響進行某種估計是否合理？

Yes, sure. I think I can give you the answer now. It's obviously due in 2025. The impact is not expected to be material, like some of the jurisdictions where it's not at 15%, which is what the OECD wants. There will be some tick up in that tax bill. But we really don't have too many jurisdictions, which are outside of the 15% Darko, but I'm happy to provide more details, but it won't be material at all that I can tell you.

是的，當然。我想我現在可以給你答案了。顯然是在 2025 年。該稅單將會增加。但我們確實沒有太多司法管轄區，超出了 15% 的達科，但我很樂意提供更多細節，但我可以告訴你的根本不重要。

The next question is from Sohrab Movahedi from BMO Capital Markets.

下一個問題來自 BMO 資本市場的 Sohrab Movahedi。

Okay. I think most of the questions were asked and answered. Just one clarification. I think, Raj, you mentioned Brazil, at least once in your remarks, I think you talked about it in the context of good deposit growth. Is Brazil is a battleground for you? Is this an area that you're likely to deploy capital in, please?

好的。我認為大多數問題都已被提出並得到解答。只是一處澄清。我想，拉吉，您在演講中至少提到過一次巴西，我認為您是在存款良好增長的背景下談到的。巴西是你的戰場嗎？請問這是您可能部署資金的領域嗎？

We have built a sound franchise in Brazil, focusing on the right clients. We have a great team on the ground. But that responded to a strategy of asset growth, which is not the strategy we're focused on now. The focus with Brazil is to ensure that, one, returns increase, primacy drives, the clients we serve, and it's an integral part of our connected franchise.

我們在巴西建立了完善的特許經營權，專注於合適的客戶。我們有一支優秀的團隊。但這是對資產成長策略的回應，而這不是我們現在關注的策略。巴西的重點是確保，第一，回報增加，首要驅動力，我們服務的客戶，這是我們互聯特許經營不可分割的一部分。

We don't expect capital to be deployed in Brazil going forward. We do expect returns to continue to improve and we have every confidence in the quality of the team that we have on the ground to get that resolved, and we're seeing it already, seeing tremendous progress there. But ultimately, Brazil is about how can that franchise continue to contribute to a connected strategy that serves multinational clients, not about incremental capital at all.

我們預計未來不會在巴西部署資本。我們確實期望回報繼續提高，我們對解決這個問題的團隊品質充滿信心，而且我們已經看到了這一點，看到了巨大的進步。但歸根結底，巴西的問題在於該特許經營權如何繼續為服務跨國客戶的互聯策略做出貢獻，而不是增量資本。

So we won't have Francisco a quarter where you say PCLs are higher because of impairments in Brazil, for example?

因此，我們不會讓弗朗西斯科四分之一您說 PCL 較高是因為巴西的減值，例如？

No, not at all. I mean if you look at the exposure we have in Brazil, as I said, has been very well managed. All primary strong clients in terms of quality, global names primarily that do business in Brazil and that we serve elsewhere. So no, we do not anticipate at all a PCL issue in Brazil.

一點都不。我的意思是，如果你看看我們在巴西的曝光，正如我所說，管理得很好。所有主要的優質客戶都是主要在巴西開展業務並在其他地方提供服務的全球知名品牌。因此，我們預計巴西不會出現 PCL 問題。

And so this would be in support of GBM LatAm operations?

那麼這將支援 GBM LatAm 營運？

Yes, primarily GBM driven and market business. And again, you're going to continue to see us not only in Brazil, but certainly in Europe and Asia is this drive of multinational banking really at the heart of who we serve and how we serve them. This will be in connection to increase share of wallet across all of our footprint with these names.

是的，主要是 GBM 驅動和市場業務。再說一次，您不僅會在巴西，而且在歐洲和亞洲繼續看到我們，這種跨國銀行業務的驅動力確實是我們為誰服務以及如何為他們服務的核心。這將與增加這些名稱在我們所有足跡中的錢包份額有關。

So we will not be focused on, for example, Brazilian names that operate only in Brazil. We will be focused on names that operate across our footprint that also have a presence in Brazil, and we will be aiming to deploy capital and close those global relationships not necessarily only in Brazil.

因此，我們不會關注僅在巴西運營的巴西名稱。我們將重點關注在我們的業務範圍內運營且在巴西也有業務的品牌，我們的目標是部署資本並建立密切的全球關係，而不僅僅是在巴西。

There are no further questions registered at this time. I would like to turn back the meeting over to Raj.

目前沒有登記任何其他問題。我想把會議轉交給 Raj。

Thank you very much on behalf of the entire management team, I want to thank everyone for participating in our call today, and we look forward to speaking again at our Q3 call in August. This concludes our second quarter results call. Have a great day.

我代表整個管理團隊非常感謝大家，感謝大家今天參與我們的電話會議，我們期待在 8 月的第三季電話會議上再次發言。我們的第二季業績電話會議到此結束。祝你有美好的一天。

The conference has now ended. Please disconnect your lines at this time, and thank you for your participation.

會議現已結束。此時請斷開您的線路，感謝您的參與。